I’ve been on the wholesale side of the Refrigerant industry for over seven years now and I’ve learned when to buy and how to buy.

When to Buy?

First thing is first, if you’re looking to buy refrigerant by the pallet you have to know when to buy. If you are in a position where a pallet or two will last you for most of the year I would suggest purchasing in the dead of winter. Refrigerant is a commodity and prices sky rocket in the middle of summer but when we’re in the winter months prices tank and a lot of vendors are trying to blow out all of their old product before the next season starts up. Now, this strategy only works if you have the capital to buy up a few pallets in the slow season and sit on them for the year. Otherwise, you’ll run out in the peak of the season and have to pay an outrageous price to get your next pallet.

How to Buy?

How many jugs of Refrigerant are on a pallet? When I’ve dealt with R-134A and R-410A cylinders they all came forty jugs to a pallet. So, if you’re buying at $60.00 a jug you’re looking at spending $2,400.00 per one pallet. Now, if you are considering purchasing more than one pallet you have room to negotiate more with your vendor. If you’re buying 4-5 pallets you can most definitely get another few dollars per cylinder out of your vendor.

Now, if you mean serious business and are looking to purchase a trailer-load of product you can get your price down to dirt cheap levels. A trailer-load or container load is twenty pallets of Refrigerant. So, again, if you’re looking at the $60.00 price point you’ll have a total of $48,000 for 800 jugs of Refrigerant. When you are purchasing at this level you have the ability to not only negotiate with your existing vendors but to also import Refrigerant from another country such as China.

I have not imported Chinese Refrigerant before, but I know that you have to be VERY careful. There are many instances of buyers being scammed by false Chinese companies. You pay your part and the product never comes and that company you paid has mysteriously vanished.

However, if you do have a successful import from China you will see your acquisition price drop significantly. Last year when I was receiving quotes on pallets of R-410A I had quotes between $58.00 and $68.00 from various vendors. Out of curiosity I contacted some Chinese companies to see what the price per jug would be on a container. I was quoted $42.00 per cylinder. $42.00.That is a $16.00 savings per jug, and if you times that by 800 jugs on a container you are looking at $12,800 in savings by buying from China. Keep in mind that you will have to pay for the freight to get it to your location in the United States and that will be approximately $1,500-$2,500, but even with that taken out you are still looking at $10,000 in savings by importing. If you decide to import just BE CAREFUL.

Who to buy From?

There are tons of companies out there where you can purchase refrigerant from. The trick is finding the right company and getting the best price. When looking to purchase Refrigerant it is best to receive at-least three quotes from various vendors.  This gives you a diverse range of prices and notifies you if you are being ripped off.

There are many ‘vendors’ who do what I did last year and drop-shop the Refrigerant. I never actually touched the product. I just bought it from my vendor, marked it up, and told them where to ship it. The key here is to identify the wholesalers from the drop-shippers.

A list of vendors can be found in this alternate blog entry I did earlier this year by clicking here.

Thanks for reading, and if you have any questions please contact me.

Alec Johnson

Looking to purchase Refrigerant? Visit our Product page by clicking here!

 

DuPont Refrigerant

Hello all, I thought I would do a brief history of DuPont, the company that invented and patented the name ‘Refrigerant.’ This will be a learning experience for me as well as I do not know too much about the company. Most of the information found in this blog is either from their Wikipedia page or their about us on their webpage.

DuPont was founded in 1802 in Wilmington, Delaware by Eleuthere Irenee Du Pont. (Try saying that name out loud!.) Originally, DuPont began as a manufacturer of gun powder as Du Pont noticed that America’s industry was lagging behind Europe’s.

The company expanded quickly and by the mid 1800’s they became the single largest supplier of gun powder to the American military. DuPont provided over half of the gun powder used by the Union Army during the civil war. Even before Refrigerant was invented they were having a significant impact on the history of the United States and the world.

In 1902 DuPont, the current president, died. The surviving partners sold the company to three great-grandsons of the original founder. During this time the company began acquiring smaller chemical companies across the United States. With all of these acquisitions the government grew concerned that DuPont was gaining a monopoly on the explosives industry. Under the Sherman AntiTrust Act the government split DuPont into three separate companies thus ending their monopoly on the explosives market.

In 1910 DuPont established two of the first industrial laboratories in the United States. There they begin to work on cellulose chemistry, lacquers, and other non-explosive products. DuPont central research was established at the DuPont Experimental Station across the creek where the original DuPont gun powder mills were located.

In 1914 Pierre S. DuPont invested in the new company called General Motors. The following year he was invited to sit on GM’s board of directors and would eventually be appointed the company’s chairman. In 1920 Pierre was elected president of General Motors. (I find this amazing, I had no idea that DuPont was responsible for GM!) In 1957 DuPont was forced to divest it’s interests in GM due to anti-trusts laws being violated. (The government didn’t want another monopoly on it’s hands.

In 1920 DuPont continued it’s focus on materials science. Soon after they invented synthetic rubber, nylon, and Teflon. Last but not least, they also invented one of the world’s first insecticide called phenothiazine.

In World War 2 DuPont was one of the top manufacturers for the government. With their Nylon invention they produced raw materials for parachutes, powder bags, and tires. They also played a large role in the Manhattan Project. DuPont designed, built, and operated the plant that produced the Plutonium that was necessary for the nuclear bombs used at the end of World War 2.

In the 1950s and 60s DuPont created numerous materials such as Mylar, Dacron, Orlon, and Lyrca. All of these were necessary and helpful in the Apollo missions to the moon. DuPont has also been a key developer in our military’s body armor, and is responsible for all of the bullet proof vests that our military and police personnel wear today.

Now, getting to the actual Refrigerant inventions of DuPont. (Here I thought Refrigerant was their only invention…) The very first chlorofluorocarbons, or Refrigerant, was invented in the 1890’s by a Belgian chemist named Frederic Swarts.

In the late 1920s a research team was formed at General Motors (Owned by DuPont at this time) to find a replacement  for the dangerous refrigerants that were in use at this time. In 1928 they improved the synthesis of the CFCs and successfully demonstrated their abilities.

In the 1930s General Motors & DuPont formed Kinetic Chemicals to produce Refrigerant. Their product was dichlorodifluromethane and is now referred to as R-12 Refrigerant.  The number after the R is the refrigerant class number.

Most uses of CFCs have been banned in the United States and other parts of the world due to their depleted effects on the O-Zone layer. The most common type of Refrigerant today is the hydroflurocarbons or HFCs. HFCs include the most popular types of Refrigerant today R-134A and R-410A.

So, to sum it up DuPont has invented EVERYTHING in the past one-hundred years. They with help from General Motors invented, improved, and patented Refrigerant and today are one of the best manufacturers of Refrigerant. They are also the ONLY 100% United States manufacter of Refrigerant.

Thanks for reading,

Alec Johnson

Looking to purchase Refrigerant? Visit our Product page by clicking here!

608 & 609 EPA Certifications

In order to be qualified to handle refrigerants you need to pass a test by the Environmental Protection Agency on either 608 or 609 certification.

There are different types of certifications to consider as well:

  • 608 Type I Certification – Can only work on Small Appliance (5lbs or less of refrigerant)
  • 608 Type II Certification – Can only work on Medium, High and Very-High Pressure Appliances.
  • 608 Type III Certification – Can only work on Low-Pressure Appliances.
  • 608 Core Certification – This is needed in order to achieve any type of certification rather it be section 1, 2, or 3.
  • Universal Certification – Someone who possesses Type I, Type II and Type III Certifications as well as the Core Certification.
  • 609 Certification – This is needed to work on automobile applications.

Refrigerants are a hazardous gas and storage of refrigerant should not be taken lightly. No matter if you have R-134A, R-410A, R-22, or any other kind of refrigerant you need to take the proper steps and precautions. Below are a few key points to remember when storing your Refrigerant:

  • Ensure that all your cylinders be stored up right and are without risk of tipping over.
  • Refrigerant should be stored into a well ventilated area and temperatures should NOT exceed over 125 degrees Fahrenheit. If the temperate becomes too hot pressure can build inside the container which could cause the container to rupture. This could cause the release valve to fail which could result in an explosion of the product.
  • Ensure all Refrigerant containers/cylinders have pressure release devices to avoid combustion and or explosions.
  • Ensure there are no combustible or flammable materials nearby the containers.
  • Perform regular visual inspections of your cylinders to ensure that everything is in good order.
  • Limit the number of people who have access to your Refrigerant, as the more people who have access the higher your chance of an incident. Also, please keep out of reach of children.

Refrigerant can be dangerous, or it can be very safe. It is up to you to take the per-cautions when storing your product. Well, that about covers storage requirements for Refrigerants.

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Thank you for reading,

Alec Johnson

 

Thought everyone should know about this, I didn’t write this article but it is in regards to new tariffs on R-134A refrigerant. Click here for full article. This will have a huge effect on the price of R-134A. I was buying at $68.00 earlier this year and now the best price we can get is low $100s.

FACT SHEET

Commerce Initiates Antidumping Duty and Countervailing Duty Investigations of Imports of 1,1,1,2-Tetrafluoroethane from the People’s Republic of China

  • On December 3, 2013, the Department of Commerce (Commerce) announced the initiation of antidumping duty (AD) and countervailing duty (CVD) investigations of imports of 1,1,1,2- tetrafluoroethane from the People’s Republic of China (China).
  • The AD and CVD laws provide U.S. businesses and workers with a transparent and internationally approved mechanism to seek relief from the market-distorting effects caused by injurious dumping and unfair subsidization of imports into the United States, establishing an opportunity to compete on a level playing field.
  • For the purpose of AD investigations, dumping occurs when a foreign company sells a product in the United States at less than its fair value. For the purpose of CVD investigations, countervailable subsidies are financial assistance from foreign governments that benefit the production of goods from foreign companies and are limited to specific enterprises or industries, or are contingent either upon export performance or upon the use of domestic goods over imported goods.
  • The petitioner for these investigations is Mexichem Fluor, Inc. (LA).
  • The merchandise subject to these investigations is 1,1,1,2-Tetrafluoroethane, R-134a, or its chemical equivalent, regardless of form, type, or purity level. The chemical formula for 1,1,1,2- tetrafluoroethane is CF3-CH2F, and the Chemical Abstracts Service (“CAS”) registry number is CAS 811-97-2.1,1,1,2-Tetrafluoroethane is sold under a number of trade names including Klea 134a and Zephex 134a (Mexichem Fluor); Genetron 134a (Honeywell); Suva 134a, Dymel 134a, and Dymel P134a (DuPont); Solkane 134a (Solvay); and Forane 134a (Arkema). Generically, 1,1,1,2-tetrafluoroethane has been sold as Fluorocarbon 134a, R-134a, HFC-134a, HF A-134a, Refrigerant 134a, and UN3159.Merchandise covered by the scope of these investigations is currently classified in the Harmonized Tariff Schedule of the United States (“HTSUS”) at subheading 2903.39.2020. Although the HTSUS subheading and CAS registry number are provided for convenience and customs purposes, the written description of the scope is dispositive..
  • In 2012, imports of 1,1,1,2-tetrafluoroethane from China were valued at an estimated $53.2 million.

NEXT STEPS

Looking to purchase Refrigerant? Visit our Product page by clicking here!

• The U.S. International Trade Commission (ITC) is scheduled to make its preliminary injury determinations on or before December 13, 2013.

• If the ITC determines that there is a reasonable indication that imports of 1,1,1,2-tetrafluoroethane from China materially injures, or threatens material injury to, the domestic industry, the investigations will continue and Commerce will be scheduled to make its preliminary CVD determination in February 2014 and its preliminary AD determination in April 2014, unless the statutory deadlines are extended. If the ITC’s preliminary determinations are negative, the investigations will be terminated.